81150 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98562 

(Sept. 27, 2023), 88 FR 68240. The Commission has 

received no comments on the proposal. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

i. The number of Trading Pauses per 

month, broken out by (1) Type of Reopening, 

(2) Category, and (3) Length of the Trading 

Pause. 

ii. Monthly distribution statistics (mean, 

median, 90th percentile, and 99th percentile) 

on the duration of each Trading Pause, 

broken out by (1) Type of Reopening and (2) 

Category. 

iii. The number of Trading Pauses ending 

in a: 

(1) trade; 

(2) quote; and 

(3) potential closing auction, broken out by 

(a) Type of Reopening, (b) Category, and (c) 

Length of Trading Pause. 

iv. For Trading Pauses in NMS Stocks 

preceded by a Limit Up state, monthly 

distribution statistics (mean, median, 90th 

percentile, and 99th percentile) on the 

percentage price change from the Limit Up 

pricing that triggered the Trading Pause to 

the reopening price on exiting the Trading 

Pause (i.e., the reopening trade or midpoint 

price), broken out by (1) Category and (2) 

whether the Trading Pause ended in a trade 

or (3) in a quote (i.e., the reopening price was 

a midpoint). 

v. For Trading Pauses in NMS Stocks 

preceded by a Limit Down state, monthly 

distribution statistics (mean, median, 90th 

percentile, and 99th percentile) on the 

percentage price change from the Limit Down 

pricing that triggered the Trading Pause to 

the reopening price on exiting the Trading 

Pause (i.e., the reopening trade or midpoint 

price), broken out by (1) Category and (2) 

whether the Trading Pause ended in a trade 

or (3) in a quote (i.e., the reopening price was 

a midpoint). 

vi. For Trading Pauses in NMS Stocks 

where the reopening process ended in a trade 

or quote (with resulting reference price equal 

to the midpoint of that quote), monthly 

distribution statistics (mean, median, 90th 

percentile, and 99th percentile) on the 

percentage price change from the reopening 

price on exiting the Trading Pause (i.e., the 

reopening trade or midpoint price) to 

(1) the highest price of all last sale eligible 

trades; 

(2) the lowest price of all last sale eligible 

trades; and 

(3) the trade-weighted average price of all 

last sale eligible trades for the five minutes 

following the conclusion of the Trading 

Pause, broken out by (a) Category, (b) 

whether the Trading Pause was preceded by 

a Limit Up state or (c) a Limit Down state, 

and (d) whether the Trading Pause ended in 

a trade or (e) in a quote (i.e., the reopening 

price was a midpoint). 

C. Reports on Market Events 

At the Commission’s request, the Operating 

Committee shall provide the Commission 

and make publicly available a report 

analyzing the Plan’s operation during a 

significant market event that (1) materially 

impacted the trading of more than one 

security across multiple Trading Centers; and 

(2) is directly related to or implicating the 

performance of the Plan. Such report shall be 

provided to the Commission no later than 30 

days following the Commission’s request, or 

at a later date as agreed upon between the 

Commission and the Operation Committee. 

The requirement to submit a report under 

this section may be satisfied by including the 

required analysis within an Annual Report. 

[FR Doc. 2023–25543 Filed 11–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98945; File No. SR– 

CboeBZX–2023–072] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To List and Trade Shares 

of the Franklin Bitcoin ETF Under BZX 

Rule 14.11(e)(4), Commodity-Based 

Trust Shares 

November 15, 2023. 

On September 26, 2023, Cboe BZX 

Exchange, Inc. (‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares of the Franklin 

Bitcoin ETF under BZX Rule 14.11(e)(4), 

Commodity-Based Trust Shares. The 

proposed rule change was published for 

comment in the Federal Register on 

October 3, 2023.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is November 17, 

2023. The Commission is extending this 

45-day time period. 

The Commission finds it appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change 

and the issues raised therein. 

Accordingly, the Commission, pursuant 

to Section 19(b)(2) of the Act,5

designates January 1, 2024 as the date 

by which the Commission shall either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File No. SR–CboeBZX–2023–072). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25660 Filed 11–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98941; File No. SR–Phlx– 

2023–47] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Pricing 

Schedule at Options 7, Sections 4 and 

7 Regarding Multiply Listed Options 

Fees and Routing Fees 

November 15, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

1, 2023, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III, below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Phlx’s Pricing Schedule at Options 7, 

Section 4, Multiply Listed Options Fees, 

and Options 7, Section 7, Routing Fees. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/phlx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 


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Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 81151 

3The term ‘‘Lead Market Maker’’ applies to 

transactions for the account of a Lead Market Maker 

(as defined in Options 2, Section 12(a)). A Lead 

Market Maker is an Exchange member who is 

registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a). An options 

Lead Market Maker includes a Remote Lead Market 

Maker which is defined as an options Lead Market 

Maker in one or more classes that does not have a 

physical presence on an Exchange floor and is 

approved by the Exchange pursuant to Options 2, 

Section 11. See Options 7, Section 1(c). The term 

‘‘Floor Lead Market Maker’’ is a member who is 

registered as an options Lead Market Maker 

pursuant to Options 2, Section 12(a) and has a 

physical presence on the Exchange’s trading floor. 

See Options 8, Section 2(a)(3). 

4The term ‘‘Market Maker’’ is defined in Options 

1, Section 1(b)(28) as a member of the Exchange 

who is registered as an options Market Maker 

pursuant to Options 2, Section 12(a). A Market 

Maker includes SQTs and RSQTs as well as Floor 

Market Makers. See Options 7, Section 1(c). The 

term ‘‘Floor Market Maker’’ is a Market Maker who 

is neither an SQT or an RSQT. A Floor Market 

Maker may provide a quote in open outcry. See 

Options 8, Section 2(a)(4). 

5The term ‘‘Firm’’ applies to any transaction that 

is identified by a member or member organization 

for clearing in the Firm range at The Options 

Clearing Corporation. See Options 7, Section 1(c). 6The term ‘‘Broker-Dealer’’ applies to any 

transaction which is not subject to any of the other 

transaction fees applicable within a particular 

category. See Options 7, Section 1(c). 

7The term ‘‘Customer’’ applies to any transaction 

that is identified by a member or member 

organization for clearing in the Customer range at 

The Options Clearing Corporation (‘‘OCC’’) which 

is not for the account of a broker or dealer or for 

the account of a ‘‘Professional’’ (as that term is 

defined in Options 1, Section 1(b)(45)). See Options 

7, Section 1(c). 

8The term ‘‘Professional’’ applies to transactions 

for the accounts of Professionals, as defined in 

Options 1, Section 1(b)(45) means any person or 

entity that (i) is not a broker or dealer in securities, 

and (ii) places more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s). See Options 7, 

Section 1(c). 

9Electronic QCC Orders are described in Options 

3, Section 12. 

10Floor QCC Orders are described in Options 8, 

Section 30(e). 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Phlx proposes to amend its Pricing 

Schedule at Options 7, Section 4, 

Multiply Listed Options Fees, and 

Options 7, Section 7, Routing Fees. Each 

pricing change will be described below. 

Options 7, Section 4 

Phlx proposes to amend its Pricing 

Schedule at Options 7, Section 4, 

‘‘Multiply Listed Options Fees (Includes 

options overlying equities, ETFs, ETNs 

and indexes which are Multiply Listed) 

(Excludes SPY and broad-based index 

options symbols listed within Options 

7, Section 5.A).’’ Specifically, Phlx 

proposes to amend its Qualified 

Contingent Cross (‘‘QCC’’) Rebates. 

Today, the Exchange assesses a $.20 

per contract QCC Transaction Fee for a 

Lead Market Maker,3 Market Maker,4

Firm 5 and Broker-Dealer.6 Customers 7

and Professionals 8 are not assessed a 

QCC Transaction Fee. QCC Transaction 

Fees apply to electronic QCC Orders 9

and Floor QCC Orders.10 Additionally, 

today, Phlx pays QCC rebates. 

Specifically, Phlx pays a QCC Rebate of 

$0.12 per contract on electronic QCC 

Orders, as defined in Options 3, Section 

12, and Floor QCC Orders, as defined in 

Options 8, Section 30(e), when a QCC 

Order is comprised of a Customer or 

Professional order on one side and a 

Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on the 

other side. This rebate is $0.17 per 

contract in the event that a member or 

member organization executes greater 

than 1,000,000 qualifying QCC contracts 

in a given month. Further, this rebate is 

$0.22 per contract in the event that a 

member or member organization 

executes: (1) greater than 1,000,000 

qualifying QCC contracts in a given 

month, (2) Floor Originated Strategy 

Executions in excess of 3,500,000 

contracts in a given month, and (3) at 

least 40% of the member or member 

organization’s QCC executed contracts 

in that month are comprised of a Lead 

Market Maker, Market Maker, BrokerDealer, or Firm order on one side and 

Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on the 

other side. 

Also, the Exchange pays a QCC Rebate 

of $0.14 per contract on electronic QCC 

Orders, as defined in Options 3, Section 

12, and Floor QCC Orders, as defined in 

Options 8, Section 30(e), when a QCC 

Order is comprised of a Lead Market 

Maker, Market Maker, Broker-Dealer, or 

Firm order on one side and a Lead 

Market Maker, Market Maker, BrokerDealer, or Firm order on the other side. 

This rebate is $0.19 per contract in the 

event that a member or member 

organization executes greater than 

1,000,000 qualifying QCC contracts in a 

given month. Further, this rebate is 

$0.27 per contract in the event that a 

member or member organization 

executes: (1) greater than 1,000,000 

qualifying QCC contracts in a given 

month, (2) Floor Originated Strategy 

Executions in excess of 3,500,000 

contracts in a given month, and (3) at 

least 40% of the member or member 

organization’s QCC executed contracts 

in that month are comprised of a Lead 

Market Maker, Market Maker, BrokerDealer, or Firm order on one side and 

Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on the 

other side. 

At this time, the Exchange proposes to 

amend the number of qualifying QCC 

contracts that must be executed in a 

given month with respect to these 

aforementioned rebates. The Exchange 

proposes to amend the current 

1,000,000 qualifying QCC contracts to 

750,000 qualifying QCC contracts in. 

With this proposed changed, the rule 

text would provide: 

• A QCC Rebate of $0.12 per contract 

will be paid on electronic QCC Orders, 

as defined in Options 3, Section 12, and 

Floor QCC Orders, as defined in Options 

8, Section 30(e), when a QCC Order is 

comprised of a Customer or Professional 

order on one side and a Lead Market 

Maker, Market Maker, Broker-Dealer, or 

Firm order on the other side. This rebate 

will be $0.17 per contract in the event 

that a member or member organization 

executes greater than 750,000 qualifying 

QCC contracts in a given month. This 

rebate will be $0.22 per contract in the 

event that a member or member 

organization executes: (1) greater than 

750,000 qualifying QCC contracts in a 

given month, (2) Floor Originated 

Strategy Executions in excess of 

3,500,000 contracts in a given month, 

and (3) at least 40% of the member or 

member organization’s QCC executed 

contracts in that month are comprised of 

a Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on one side 

and Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on the 

other side. 

• A QCC Rebate of $0.14 per contract 

will be paid on electronic QCC Orders, 

as defined in Options 3, Section 12, and 

Floor QCC Orders, as defined in Options 

8, Section 30(e), when a QCC Order is 

comprised of a Lead Market Maker, 

Market Maker, Broker-Dealer, or Firm 

order on one side and a Lead Market 

Maker, Market Maker, Broker-Dealer, or 

Firm order on the other side. This rebate 

will be $0.19 per contract in the event 


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81152 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 

11See Phlx Options 3, Section 7(d). 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(4) and (5). 

14NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 

2010). 

15 Id. at 539 (quoting Securities Exchange Act 

Release No. 59039 (December 2, 2008), 73 FR 

74770, 74782–83 (December 9, 2008) (SR– 

NYSEArca–2006–21)). 

16The Exchange would no longer assess the lower 

routing of $0.13 per contract, in addition to the 

that a member or member organization 

executes greater than 750,000 qualifying 

QCC contracts in a given month. This 

rebate will be $0.27 per contract in the 

event that a member or member 

organization executes: (1) greater than 

750,000 qualifying QCC contracts in a 

given month, (2) Floor Originated 

Strategy Executions in excess of 

3,500,000 contracts in a given month, 

and (3) at least 40% of the member or 

member organization’s QCC executed 

contracts in that month are comprised of 

a Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on one side 

and Lead Market Maker, Market Maker, 

Broker-Dealer, or Firm order on the 

other side. 

The Exchange believes that lowering the 

number of qualifying QCC contracts for 

purpose of qualifying for these QCC 

Rebates from 1,000,000 to 750,000 

qualifying QCC contracts will 

incentivize Phlx members and member 

organizations to transact a greater 

amount of QCC Orders on Phlx. 

Options 7, Section 7 

Currently, Phlx assesses a NonCustomer routing fee of $0.99 per 

contract and a Customer routing fee of 

$0.23 per contract, in addition to the 

actual transaction fee assessed by the 

away market, for routing contracts to 

markets other than The Nasdaq Options 

Market LLC (‘‘NOM’’) and Nasdaq BX, 

Inc. (‘‘BX’’). Currently, if the away 

market pays a rebate, the Exchange 

assesses a Customer a Routing Fee of 

$0.13 per contract for markets other 

than NOM and BX. Currently, Phlx 

assesses a Customer a $0.13 per contract 

Fixed Fee in addition to the actual 

transaction fee assessed when routing to 

NOM and BX. 

At this time, the Exchange proposes to 

assess a Non-Customer an increased 

routing fee to route to any options 

exchange of $1.20 per contract. The 

Exchange also proposes to assess a 

Customer a Fixed Fee of $0.23 per 

contract, in addition to the actual 

transaction fee assessed by the away 

market, for routing contracts to any 

options exchange. The Exchange would 

no longer assess the lower routing of 

$0.13 per contract, in addition to the 

actual transaction fee assessed, when 

routing to NOM and BX. The Exchange 

will continue to assess a $0.13 per 

contract routing fee if the away market 

pays a rebate, including NOM and BX. 

The purpose of the proposed routing 

fees is to recoup costs incurred by the 

Exchange when routing orders to other 

options exchanges on behalf of options 

members and member organizations. In 

determining its proposed routing fees, 

the Exchange took into account 

transaction fees assessed by other 

options exchanges, the Exchange’s 

projected clearing costs, and the 

projected administrative, regulatory, 

and technical costs associated with 

routing orders to other options 

exchanges. The Exchange will continue 

to use its affiliated broker-dealer, 

Nasdaq Execution Services, to route 

orders to other options exchanges. 

Routing services offered by the 

Exchange are completely optional and 

market participants can readily select 

between various providers of routing 

services, including other exchanges and 

broker-dealers. Also, the Exchange notes 

that market participants may elect to 

mark their orders as ‘‘Do Not Route’’ to 

avoid any routing fees.11 The Exchange 

believes that the proposed Routing Fees 

would enable the Exchange to recover 

the costs it incurs to route orders to 

away markets after taking into account 

the other costs associated with routing 

orders to other options exchanges. Also, 

the Exchange’s proposal would 

uniformly assess the same Customer 

routing fees, regardless of the away 

venue, of $0.23 per contract, in addition 

to the actual transaction fee assessed, or 

$0.13 per contract if the away market 

pays a rebate. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,13 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The proposed changes to its Pricing 

Schedule are reasonable in several 

respects. As a threshold matter, the 

Exchange is subject to significant 

competitive forces in the market for 

options transaction services that 

constrain its pricing determinations in 

that market. The fact that this market is 

competitive has long been recognized by 

the courts. In NetCoalition v. Securities 

and Exchange Commission 14

(‘‘NetCoalition’’), the D.C. Circuit stated, 

‘‘[n]o one disputes that competition for 

order flow is ‘fierce.’ . . . As the SEC 

explained, ‘[i]n the U.S. national market 

system, buyers and sellers of securities, 

and the broker-dealers that act as their 

order-routing agents, have a wide range 

of choices of where to route orders for 

execution’; [and] ‘no exchange can 

afford to take its market share 

percentages for granted’ because ‘no 

exchange possesses a monopoly, 

regulatory or otherwise, in the execution 

of order flow from broker dealers’ 

. . . .’’ 15

Numerous indicia demonstrate the 

competitive nature of this market. For 

example, clear substitutes to the 

Exchange exist in the market for options 

transaction services. The Exchange is 

only one of seventeen options 

exchanges to which market participants 

may direct their order flow. Within this 

environment, market participants can 

freely and often do shift their order flow 

among the Exchange and competing 

venues in response to changes in their 

respective pricing schedules. Within the 

foregoing context, the proposal 

represents a reasonable attempt by the 

Exchange to attract additional order 

flow to the Exchange and increase its 

market share relative to its competitors. 

Options 7, Section 4 

The Exchange’s proposal to amend a 

qualifier for several QCC Rebates to 

lower the number of qualifying QCC 

contracts that must be executed in a 

given month from 1,000,000 to 750,000 

qualifying QCC contracts is reasonable 

because lowering the number of 

qualifying QCC contracts for purpose of 

these QCC Rebates from 1,000,000 to 

750,000 qualifying QCC contracts will 

incentivize Phlx members and member 

organizations to transact a greater 

number of QCC Orders on Phlx. 

The Exchange’s proposal to amend a 

qualifier for several QCC Rebates to 

lower the number of qualifying QCC 

contracts that must be executed in a 

given month from 1,000,000 qualifying 

QCC contracts to 750,000 qualifying 

QCC contracts is equitable and not 

unfairly discriminatory because all 

members and member organizations 

may qualify for QCC Rebates, provided 

they transact the requisite volume. 

Options 7, Section 7 

The Exchange’s proposal to assess a 

Non-Customer an increased routing fee 

of $1.20 to route to another options 

exchange and a Customer a Fixed Fee of 

$0.23 per contract, in addition to the 

actual transaction fee assessed by the 

away market, for routing contracts to 

any options exchange 16 is reasonable 


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Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 81153 

actual transaction fee assessed, when routing to 

NOM and BX. 

17Both NOM and BX offer rebates. See NOM’s 

Pricing Schedule at Options 7, Section 2 and BX’s 

Pricing Schedule at Options 7, Section 2. 

18See Phlx Options 3, Section 7(d). 19 15 U.S.C. 78s(b)(3)(A)(ii). 

because the proposed Routing Fees 

would enable the Exchange to recover 

the costs it incurs to route orders to 

away markets after taking into account 

the other costs associated with routing 

orders to other options exchanges. In 

determining its proposed routing fees, 

the Exchange took into account 

transaction fees assessed by other 

options exchanges, the Exchange’s 

projected clearing costs, and the 

projected administrative, regulatory, 

and technical costs associated with 

routing orders to other options 

exchanges. While the Exchange is no 

longer offering a discounted Routing Fee 

to route to NOM and BX, the Exchange 

notes that the Routing Fee will be $0.13 

for these markets, similar to other 

options markets, if they pay a rebate.17

Routing services offered by the 

Exchange are completely optional and 

market participants can readily select 

between various providers of routing 

services, including other exchanges and 

broker-dealers. Also, the Exchange notes 

that market participants may elect to 

mark their orders as ‘‘Do Not Route’’ to 

avoid any routing fees.18

The Exchange’s proposal to assess a 

Non-Customer an increased routing fee 

of $1.20 to route to another options 

exchange and a Customer a Fixed Fee of 

$0.23 per contract, in addition to the 

actual transaction fee assessed by the 

away market, for routing contracts to 

any options exchange is equitable and 

not unfairly discriminatory as all NonCustomers would be assessed a uniform 

routing fee. Additionally, Customers 

will be uniformly assessed the same fee, 

regardless of the destination market. 

Customers will continue to receive 

favorable pricing as compared to other 

market participants because Customer 

liquidity enhances market quality on the 

Exchange by providing more trading 

opportunities, which benefits all market 

participants. Finally, the Exchange 

notes that market participants may elect 

to market orders as Do Not Route to 

avoid any routing fees. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

Inter-Market Competition 

The proposal does not impose an 

undue burden on inter-market 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets and will offer 

market participants with another choice 

of where to transact options. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee changes in this 

market may impose any burden on 

competition is extremely limited. 

Intra-Market Competition 

The proposed amendments do not 

impose an undue burden on intramarket competition. 

Options 7, Section 4 

The Exchange’s proposal to amend a 

qualifier for several QCC Rebates to 

lower the number of qualifying QCC 

contracts that must be executed in a 

given month from 1,000,000 qualifying 

QCC contracts to 750,000 qualifying 

QCC contracts does not impose an 

undue burden on competition because 

all members and member organizations 

may qualify for QCC Rebates, provided 

they transact the requisite volume. 

Options 7, Section 7 

The Exchange’s proposal to assess a 

Non-Customer an increased routing fee 

of $1.20 to route to another options 

exchange and a Customer a Fixed Fee of 

$0.23 per contract, in addition to the 

actual transaction fee assessed by the 

away market, for routing contracts to 

any options exchange does not impose 

an undue burden on competition as all 

Non-Customers would be assessed a 

uniform routing fee. Additionally, 

Customers will be uniformly assessed 

the same fee, regardless of the 

destination market. Customers will 

continue to receive favorable pricing as 

compared to other market participants 

because Customer liquidity enhances 

market quality on the Exchange by 

providing more trading opportunities, 

which benefits all market participants. 

Finally, the Exchange notes that market 

participants may elect to market orders 

as Do Not Route to avoid any routing 

fees. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.19

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

Phlx–2023–47 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–Phlx–2023–47. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 


lotter on DSK11XQN23PROD with NOTICES1
81154 Federal Register / Vol. 88, No. 223 / Tuesday, November 21, 2023 / Notices 

20 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 96930, 

Investment Advisers Act Release No. 6239 

(February 15, 2023), 88 FR 13872 (March 6, 2023) 

(‘‘T+1 Adopting Release’’). 

4See supra note 3. 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–Phlx–2023–47 and should be 

submitted on or before December 12, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25657 Filed 11–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98954; File No. SR– 

NASDAQ–2023–046] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Shorten 

the Standard Settlement Cycle 

November 15, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

13, 2023, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Nasdaq Rules 11140 (Transactions in 

Securities ‘‘Ex-Dividend,’’ ‘‘Ex-Rights’’ 

or ‘‘Ex-Warrants’’), 11150 (Transactions 

‘‘Ex-Interest’’ in Bonds Which Are Dealt 

in ‘‘Flat’’), 11210 (Sent by Each Party), 

11320 (Dates of Delivery), and 11620 

(Computation of Interest), to conform 

them to the Commission’s amendment 

to Rule 15c6–1(a) of the Act 3 to shorten 

the standard settlement cycle for most 

broker-dealer transactions from two 

business days after the trade date 

(‘‘T+2’’) to one business days after the 

trade date (‘‘T+1’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Effective May 5, 2023, the 

Commission adopted rule amendments 

to shorten the standard settlement cycle 

for most broker-dealer transactions from 

T+2 to T+1.4 In light of the recently 

adopted rule amendments to Rule 15c6– 

1(a) of the Act to require standard 

settlement no later than T+1, Nasdaq 

proposes to amend its rules pertaining 

to securities settlement by, among other 

things, amending the definition of 

‘‘standard’’ settlement as occurring on 

T+1. 

Specifically, Nasdaq proposes to 

amend the following Rules: 11140 

(Transactions in Securities ‘‘ExDividend,’’ ‘‘Ex-Rights’’ or ‘‘ExWarrants’’), 11150 (Transactions ‘‘ExInterest’’ in Bonds Which Are Dealt in 

‘‘Flat’’), 11210 (Sent by Each Party), 

11320 (Dates of Delivery), and 11620 

(Computation of Interest). The details of 

the proposed rule changes are described 

below. 

Nasdaq Rule 11140 

Rule 11140(b)(1) currently provides 

that for dividends or distributions, and 

the issuance or distribution of warrants, 

that are less than 25 percent of the value 

of the subject security, if definitive 

information is received sufficiently in 

advance of the record date, the date 

designated as the ‘‘ex-dividend date’’ 

shall be the first business day preceding 

the record date if the record date falls 

on a business day, or the second 

business day preceding the record date 

if the record date falls on a day 

designated by Nasdaq Regulation as a 

non-delivery date. Nasdaq proposes to 

amend Rule 11140(b)(1) to shorten the 

time frames by one business day. With 

this change the ex-dividend date would 

be the same business day as the record 

date if the record date falls on a 

business day, or the first business day 

preceding the record date if the record 

date falls on a day designated by Nasdaq 

Regulation as a non-delivery date. 

Rule 11150 

Rule 11150(a) currently prescribes the 

manner for establishing ‘‘ex-interest 

dates’’ for transactions in bonds or other 

similar evidence of indebtedness which 

are traded ‘‘flat.’’ Such transactions are 

‘‘ex-interest’’ on the first business day 

preceding the record date if the record 

date falls on a business day, on the 

second business day preceding the 

record date if the record date falls on a 

day other than a business day, or on the 

third business day preceding the date on 

which an interest payment is to be made 

if no record date has been fixed. Nasdaq 

proposes to amend Rule 11150(a) to 

shorten the time frames by one business 

day. 

Rule 11210 

Paragraphs (c) and (d) of Rule 11210 

set forth the ‘‘Don’t Know’’ (‘‘DK’’) 

voluntary procedures for using ‘‘DK 

Notices’’ or other forms of notices, 

respectively. When a party to a 

transaction sends a comparison or 

confirmation of a trade, but does not 

receive a comparison or confirmation or 

a signed DK, from the contra-member by 

the close of one business day following 

the trade date of the transaction, the 

confirming member shall send a DK 

Notice to the contra-member. Thereafter, 

the contra-member has two business 


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